Yorkshire & Humber manufacturers are seeing a strong picture as they end the year, with business confidence indicators showing promising signs of a more stable economic environment after the global and domestic uncertainty of the last few years.
However, while Make UK upgraded its growth forecast for manufacturing in 2023 to +0.8%, it is forecasting growth in 2024 of just +0.1%. This reflects the anaemic economic picture for the UK overall and weak growth in the Eurozone, which remains the UK’s biggest market.
The findings come in the Q4 Manufacturing Outlook survey published by Make UK and business advisory firm BDO. According to the survey, output in the Yorkshire & Humber is set to surge at the start of next year to a balance of +53% in Q1, which is substantially above the national average.
This is down to the growth in domestic orders, which are significantly ahead of export orders, reflecting the demand for steel and construction products as well as the ongoing strength of the region’s food and drink sector. The total order picture for the next quarter stands at +67%, which is very strong by historic standards and is resulting in similarly strong recruitment intentions as the demand for skills continues to increase.
Dawn Huntrod, Region Director for the North at Make UK, said: “After the economic and political shocks of the last few years manufacturers in the Yorkshire & Humber are beginning to see far greater stability and much better trading conditions.
“While one swallow doesn’t make a summer, hopefully the positive announcements in the Autumn Statement can at least allow them to plan with more certainty without having to constantly fight fires.”
Steve Talbot, Head of Manufacturing at BDO in Yorkshire, added: “Manufacturers across Yorkshire have been calling on the Government to provide targeted support to help stimulate growth and investment for some time, and it feels like some headway was made in last month’s Autumn Statement.
“Yorkshire firms are ending the year on a relatively stable footing with some certainty at least in the tax environment to support their long-term investments in the UK. The hope now is that the region will deliver on its recruitment and order intentions and continue to grow next year.”
